Kemira enters TiO2 JV with Rockwood Holdings

22 May 2008 10:31  [Source: ICIS news]

SINGAPORE (ICIS news)--Finnish chemicals group Kemira has agreed to enter a 39:61 joint venture with specialty chemicals firm Rockwood Holdings to merge its titanium dioxide (TiO2) businesses with the latter’s TiO2 and functional additives units, Kemira said on Thursday.

 

Once merged, the new specialty TiO2 firm is expected to have a capacity of 240,000 tonnes/year. The business, to be headquartered in Germany, will also be better positioned to grab a larger slice of the market, the company added.

 

The affected business units include Kemira’s TiO2 manufacturing and research facilities in Pori and Oberhausen, Germany, its US-based subsidiary Kemira Specialty’s TiO2 business, as well as Rockwood’s TiO2 and functional additives facilities in Duisburg, Germany. 

 

Both parties are currently awaiting approval by the competition authorities. The firms expect the joint venture to close in the third quarter of 2008.

 

The transaction, which values Kemira’s TiO2 business in excess of €250m ($391m), will result in a small capital gain for the firm and help reduce its net debt by approximately €120m.

 

In April, Kemira posted a 32.5% year-on-year fall in first-quarter operating profits to €33m on the back of currency exchange issues and high raw material and energy costs.

 

The company’s specialty chemicals sector also reported a 63% slip in operating profits to €3.8m due to low TiO2 sales prices.

 

($1 = €0.63)

 

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By: Serene Cheong
+65 6780 4359

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